Why AMD Stock Popped Today
Key Points
AMD stock gained ground after Palantir delivered an exceptionally strong quarter.
This helped to quiet concerns of a slowdown in AI-related spending.
As one of the key players in AI, AMD has a vested interest in the continuing adoption of the technology.
- 10 stocks we like better than Advanced Micro Devices ›
Shares of Advanced Micro Devices (NASDAQ: AMD), commonly referred to as AMD, charged sharply higher on Tuesday, gaining as much as 8.7%. As of 1:38 p.m. ET, the stock was still up 8.6%.
The catalyst that sent the semiconductor specialist higher was impressive quarterly results from another crucial player in artificial intelligence (AI) -- Palantir Technologies (NASDAQ: PLTR).
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: The Motley Fool.
The AI boom continues
Palantir reported its most impressive quarterly financial report to date, and investors believe this bodes well for AMD's upcoming results.
In Q2, Palantir delivered revenue that surged 93% year over year to $1.94 billion, driving adjusted earnings per share (EPS) up 156% to $0.41%.
For context, Wall Street's consensus estimates were for revenue of $1.81 billion and adjusted EPS of $0.35, so Palantir sailed past expectations with room to spare.
The company's U.S. commercial segment stole the spotlight, with revenue surging 149% to $764 million, driven by corporate adoption of its Artificial Intelligence Platform (AIP). The U.S. government segment also delivered exceptional results, with revenue of $809 million, which soared 90%.
So, what does this have to do with AMD?
AMD is scheduled to report its second-quarter results after the market close on Tuesday, and investors are betting that Palantir's robust results will translate to a solid quarter for AMD. The semiconductor specialist is guiding for Q2 revenue to rise 46% to $11.2 billion.
Taken together, the evidence highlights the ongoing strong demand for AI. It's worth noting that at 38 times next year's expected earnings, AMD isn't a screaming bargain. However, investors are betting it can wrest share away from industry leader Nvidia, which controls more than 80% of the market for graphics processing units (GPUs) that power AI data centers. With just 6% of the market, AMD has plenty of opportunity to gain share.
Should you buy stock in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $395,463!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,268,290!*
Now, it’s worth noting Stock Advisor’s total average return is 927% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of August 4, 2026.
Danny Vena, CPA has positions in Nvidia and Palantir Technologies. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy.
Recommended Articles
